Wisdom, Human Nature, and the need for Regulation

Wisdom is ageless. Modern technology such as newly devised inventions for quicker means of communicating and exchanging information, for example, neither reduce its value nor make it obsolete. Indeed with the apparent limitless advancement of our technology, it would seem that more Wisdom is required of us, not less. In that light, it is noteworthy that the Founders of our Nation and the Framers of the Constitution exercised great wisdom with respect to Human Nature and its temptations. They understood that Human Nature has its flaws.

For example, we humans too easily give in to temptation. We tend to choose the easier though misguided path, rather than follow the more difficult but truer path toward our goals. Left to our own devises we tend to overindulge, cut corners, and shrink from responsibility, if and when convenient, and will more readily blame others than ourselves for things gone wrong. And we tend to favor our own interest over that of others when push comes to shove, even if others have more right to a claim than we do.

But it seems that we have reduced the idea of temptation to be nothing more than merely trifling with our chosen lifestyle respecting healthy living: “Oh that piece of cake is so tempting but it will ruin my diet!” Likewise it would seem that we’ve reduced the idea of Human Nature to be nothing more than a mere question of sexual orientation: gay, straight, or bi.^[1]

Our Nation’s Founders structured our government with an overarching system of “Checks and Balances.” Why? They understood that Human Nature, being what it is, must not be given free rein to do willy-nilly as it pleases, just because it can. Indeed, being smart, intelligent, well informed and well educated is no guarantee that the flaws of our Human Nature will not surface and get the better of us, wreaking havoc in our relationships or in our business. And so, we Humans need and our nature require that we have checks and balances and applied and enforceable regulation.

Remember the old adage, “Power corrupts and absolute power corrupts absolutely”? History has proven over and over again that we Humans tend to get greedy and will abuse and misuse our powers when we get too much of it. Yes, it does go to our head. Be it social, political, economic, religious, or military power, too much in too few hands is more than dangerous. It can be fatal. The Goldman Sachs’ Fraud case is a good example. These men are intelligent, well informed, well educated. You’d think that they’d have known better. What happened? It’s called Human Nature, and the failure to keep appropriate checks and balances over its weaknesses. That’s what happened.

No institution, political or economic, should be given carte blanche freedom to exercise everything it wants within its scope of power and influence. There must be regulatory discipline and limits. Wasn’t it in seventh grade social studies class that we learned about the so called Robber Barons of the 19th century and our need to stop Corporate Monopolies? Do we really think that this impulse toward amassing greater and greater wealth, money, power, and financial control over others, by a handful of a few, at the expense of the little guy, was just a 19th century tendency? Let’s be honest, despite great strides in science and technology in the last two centuries, Human Nature itself has changed very little. We still have the same flaws and weaknesses that our fore parents had ages ago.

We must therefore proactively prevent oversized Mega Corporations and Businesses, Banking or otherwise, from having too much, getting too much, or controlling too much—power, money, and influence. We should not need to relearn what many generations before us have already learned, and sometimes quite painfully. Too much power and influence in too few hands is always dangerous and must always be avoided and checked. And this is true whether it is political power (despots), economic power (Monopolies and/Robber Barons), social power (race, class, or ethnic inequalities), religious power (false gods), or military power (dictators).

And so, failing to implement solid and effective regulation over our Corporate Banking System is a failure to learn from the wisdom of the ages. Human Nature needs its checks and balances. Otherwise it’s tantamount to giving free license to reckless self-gratification in accordance with Human Nature’s baser tendencies toward selfishness and greed, and irresponsible, self-indulgent behavior. (Behold Bernie Madoff’s Ponzi scheme!) After all, Corporations are only human. Aren’t they? What do you think?

¹Not a comment on that particular issue.return